AMER AL-ROUBAIE, AHLIA UNIVERSITY, BAHRAIN
TARIQ SHAREEF YOUNIS, APPLIED SCIENCE UNIVERSITY, BAHRAIN
Purpose The aim of this paper is to discuss the importance of innovation in building capacity for knowledge creation in the GCC countries. Conversion of their economies into knowledge-based economies will require the creation of an enabling environment capable of providing adequate support and institutional incentives to promote innovation and enhance productivity. Building capacity for knowledge creation is critical for future development in GCC countries.
Methodology This paper utilises descriptive and analytical methods drawn from the literature on the knowledge-based economy. The focus of this paper will be on the importance of innovation in the process of knowledge creation and the role that the innovation system plays in the linkage between creativity and productivity growth.
Findings An insufficient environment encumbered by weak human capital and inadequate institutional infrastructures hinders the ability of the economy to create knowledge and generate linkages. The overall state of knowledge readiness remains inadequate to promote innovation and speed up the process of rapid transformation.
Originality/value Not much literature has been written about these topics and, therefore, the current paper will increase awareness regarding the urgent need of the GCC countries to build innovation capacity and create knowledge.
Keywords Innovation, Development, Human Capital, Knowledge Economy, Research and Development, Arab Countries